Abstract

The internal control system is a process, which is influenced by human resources and information technology systems, which are designed to help an organization achieve a goal. The internal control system is a way to direct, supervise, and measure the resources of a regional financial management apparatus. The purpose of the internal control system is to achieve goals and guarantee or provide accurate financial reports and ensure compliance with laws and regulations. The internal control system, consisting of policies and procedures used in company operations to provide reliable financial information and ensure compliance with applicable laws and regulations. At the regional financial management apparatus level, the objectives of internal control are related to the reliability of financial reports, timely feedback on the achievement of operational and strategic objectives, and compliance with laws and regulations on cash receipts. At a specific transaction level, internal control refers to actions taken to achieve an objective to ensure payment, receipt of cash from third parties for a service that is performed). Internal control system procedures reduce process variations and cash receipt transactions and provide more accurate results. The population in this study were 44 SKPDs in the Skouw Mabo, Skouw, Yambe, Skouw Sae, and Mosso areas, Muara Tami District, Jayapura City. These four areas are the border areas of the Republic of Indonesia and Papua New Guinea. The sample collection method is purposive sampling by taking samples from the regional financial management apparatus. The data analysis technique used in this study was SEM PLS. The results of this study indicate that the internal control system, cash sales affect cash receipts.

Highlights

  • In today's business world, there are quite many problems that must be faced by the leadership to maintain conditions or achieve progress for the regional financial management apparatus (Ahmed, &, Schneible, 2007)

  • The local government control environment includes the attitude of stakeholders and employees to the importance of control in the regional financial management apparatus

  • Cash receipts at the Regional Financial Management Agency derived from local revenue (Chang, & Hong, 2000: Fan, & Wong, 2002) Good control does not ensure that mistakes and abuse will not occur in the organization

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Summary

INTRODUCTION

In today's business world, there are quite many problems that must be faced by the leadership to maintain conditions or achieve progress for the regional financial management apparatus (Ahmed, &, Schneible, 2007). Well the structure of the regional financial management apparatus, the system of authorization and recording procedures, and the various means created to promote healthy practices all depend very much on the people who carry them out. Cash receipts at the Regional Financial Management Agency derived from local revenue (Chang, & Hong, 2000: Fan, & Wong, 2002) Good control does not ensure that mistakes and abuse will not occur in the organization. At least it will minimize the occurrence of fraud and errors in appropriate ways, so that if errors occur and fraud can be quickly identified and resolved. Hypothesis: H1: The effect of the internal control system on Regional Asset Management Cash Receipts H2: Effect of cash sales on Regional Asset Management Cash Receipts

METHODS
RESULTS AND DISCUSSION
Regional Asset Management Cash Receipts
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